Councils balk at 'cost-effective' law

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OPINION:
Councils believe they could potentially face more legal challenges thanks to changes to the Local Government Act.

The act was passed in Parliament last night, and rewrites the purpose of councils from focusing on the community's "social, economic, cultural and environmental" needs to to delivering "good-quality local infrastructure, public services and regulatory functions, in a way that is most cost-effective for households and businesses".

Local Government NZ president Lawrence Yule said the change of the definition could open councils up to legal challenges.

For example, he said ratepayers who felt that a council had not chosen the "most cost-effective" option for an infrastructure project would have the option of launching a judicial review.

"We raised with [Local Government Minister] David Carter the fact the changes could open up councils to legal challenges. But he has kept the definition."